What is the optimal number to order to maximize Joseph's expected profit and what is the...

What is the optimal number to order to maximize Joseph's expected profit and what is the expected profit on the following?

Joseph must order each year's calendar in August for delivery and eventual sale by December 31st. In previous years, standard Business Calendar sales have ranged from a low of 2000 to a high of 2300, so assume that demand is uniformly distributed between 2000 and 2300. Each calendar costs $17.90 and sells for $25.96, and unsold calendars usually sell out at a 1/2 price sale in January. Assume Joseph can only order in quantities of 50.

Expert Solution

Colby Messinger answered 2 years ago

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